TAMPA, Fla. — Profits from home flipping have fallen to their lowest level since the 2008 housing crisis, down an estimated 29.3 percent, according to a recent study from ATTOM Data. In Florida, the average investment return from a home flip last year was $64,675.
What you need to know: A recent study from ATTOM Data found that profits from home flipping have fallen to their lowest level since the 2008 housing crisis.
Nicole Perry said she's been flipping homes for three years now and the market has slowed significantly.
The decline is estimated at 29.3%.
While prices remain high, increases in the cost of materials for homebuilding slowed in 2023, according to the National Association of Home Builders.
When Nicole Perry decided to get into the home flipping business, she chose Ybor City, one of several Tampa neighborhoods experiencing growth through redevelopment.
She began buying rundown homes, renovating them, and selling them at a profit.
“A few years ago, everything was sitting on the market,” Perry says. Three years after she started flipping homes, the market has slowed significantly.
“The turnover has been much faster, so as a home renovator, you don't want to hold onto a home for too long or you'll end up paying a lot of money in mortgages, interest and fees,” Perry said.
Perry is not alone.
According to a report from ATTOM Data, investor home flipping activity has declined at the fastest rate in the past 15 years, with the average gross profit from a home flip in 2023 being $66,000 and the average return on investment being 27.5%.
Perry is currently renovating a three-bedroom, 900-square-foot home at 2505 N. 12th Street.
The second home, at 2509 E. 12th Avenue, is completed and still for sale.
“The house has been on the market for 30 days,” Perry said.
Perry says inflation and rising material costs have slowed the renovation, but she knows it's a job that can't be cut corners.
The rise in material costs for homebuilding slowed in 2023, although prices remain high, according to the National Association of Home Builders.
“I want them. [buyer] “My mission is to have a home that is functional, beautiful and meaningful,” she said.